Adopt Resolution #15-08-209 Affirming an Agreement Regarding a Lawful Non-Conforming Surface Area for the Properties Legally Described as Outlot B and Lot 1, Block 1 Verndale Commercial Park

The purpose of this case is to consider approval of an agreement to a lawful non-conforming surface area for two parcels within Verndale Commercial Park, addressed as 9619 and 9539 Highway 10 NW (the "Subject Property"). These two parcels, together with abutting land in Elk River, have been utilized over the years for motor vehicle sales. The sales office is located in Elk River, but the majority of the display area is located in Ramsey.  Questions have been raised in the past regarding the existing surfacing, which is Class V gravel, and whether it is permissible under lawful conforming rules. This case is intended to resolve any uncertainty regarding use of lawful non-conforming surfacing for display of motor vehicles.

Notification is not required for this request.

The Subject Property is located in the E-1 Employment District. However, motor vehicle sales has occurred on the site prior to this zoning designation and thus, the use itself is considered lawful non-conforming.  The Subject Property is currently improved with Class V material (there is asphalt around the sales office, but that is located in Elk River). Staff has been working with the Property Owner and the tenant (PTL Auto) for several weeks to identify an agreeable solution regarding the surfacing.

The property owner contends that the Subject Property is lawful non-conforming regarding surfacing, as it has continuously existed as a car dealership for many years. Staff acknowledges that motor vehicle sales has been the primary use on the Subject Property, but, it is unclear whether the use has ever been terminated for twelve (12) consecutive months, which would eliminate the lawful, non-conforming designation.  After reviewing aerial images of the Subject Property, it is evident that a certain area has been utilized with a gravel surface for a significant length of time.  Thus, Staff finds it reasonable to delineate that area in an exhibit and accept that as being a lawful non-conforming surface.  

Staff prepared an exhibit outlining what it would support as lawful-conforming area regarding surfacing (e.g. the area in which vehicles could be displayed) and provided that to both the Property Owner and Tenant.  Both were agreeable to both the twenty (20) foot green space area adjacent to the public road right-of-way along Highway 10 as well as the area designated as lawful non-conforming for surfacing.  Staff does want to note that both parties have been very cooperative in finding a reasonable solution to the surfacing concern and believes that this approach will help eliminate future concerns regarding what is and is not permissible for display of motor vehicles on the Subject Property.

It is noted that the City's Strategic Plan identifies this corridor to look at ways to improve the appearance of the corridor through public investment and code enforcement. If this were a new request, Staff would recommend that action be delayed or that the parking surface be upgraded to current standards. However, this appears to be a use that conformed to City Code at the time the use was created and therefore is protected by lawful, non-conforming provisions of Minnesota State Statute Chapter 462.357.

Alternatives

Alternative 1.  Approve Resolution #15-08-209 approving the exhibit that outlines the area deemed as lawful non-conforming with regard to surfacing.  This will eliminate confusion regarding where vehicles are permitted to be displayed, which benefits the Property Owner, Tenant, and the City when it comes to code enforcement.  This action would clearly outline where motor vehicles can lawfully be displayed on the property and also will ensure the twenty (20) foot green space requirement is now maintained on the Subject Property.  Staff supports this option.

Alternative 2.  Do not approve Resolution #15-08-209.  This will result in the Property Owner either challenging the City through the court system regarding lawful non-conforming rights or possibly having to make certain improvements on the Subject Property at a significant cost.  City Staff recognizes that the sale of motor vehicles has been the primary (and possibly only) use of the Subject Property for a number of years.  It is unclear whether this use has ever been terminated for a period of twelve (12) consecutive months; however, it is acknowledged that the Property Owner has likely intended for this use to continue on the Subject Property even between leases with various tenants.  Staff does not support this option.

This request is being addressed as part of Staff's regular duties.

Staff recommends approval of the Resolution #15-08-209.

Motion to adopt Resolution #15-08-209 affirming a lawful non-conforming surface area for the properties legally described as Outlot B and Lot 1, Block 1 Verndale Commercial Park.